Global products market weekly: Colder weather strengthens margins despite rate hikes from US Fed and European Central Bank

The oil market strengthened this week as sentiment improved towards global oil demand in 2023 despite new 0.5% interest rate hikes from the US Fed and European Central Bank to combat inflation. Sagging Russian waterborne crude exports this week also contributed to tighter near-term fundamentals. North Sea Dated crude’s weekly average rose by US$2.53/bbl to US$80.83/bbl in the week ended 16 December. Our ex-RVO global composite refining margin weakened by US$0.47/bbl to US$12.31/bbl as cracks fell across the barrel for all three regions. Weekly margins were at US$10.29/bbl above the five-year historical average for the same week.